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Arvind Fashions Ltd is set to buy out Flipkart Group’s 31.25 percent holding in Arvind Youth Brands Pvt Ltd in a deal valued at Rs 135 crore, according to reports.
Arvind Youth Brands Pvt Ltd houses Flying Machine, one of India’s most recognised denim and casualwear labels, with a strong footprint across the country through both wholesale channels and exclusive retail stores.
As part of the transaction, Arvind Fashions will purchase one equity share with a face value of Rs 10, along with 5.9 million compulsorily convertible preference shares priced at Rs 100 apiece, as per media reports. Once the transaction is completed, Arvind Fashions, along with its wholly owned arm Arvind Lifestyle Brands Limited, will gain 100 percent ownership of the youth brands business.
Flipkart, majority-owned by US retail giant Walmart, had invested Rs 260 crore (approximately US $28.92 million) in Arvind Youth Brands in July 2020.